the 'value of marketing' and 'the marketing of value' in contemporary times --a...

8/9/2019 The 'Value of Marketing' and 'the Marketing of Value' in Contemporary Times --A Literature Review and Research A…

http://slidepdf.com/reader/full/the-value-of-marketing-and-the-marketing-of-value-in-contemporary 1/20

Journal of Marketing Managem ent 2004 20,343-361

Sharon Ponsonby^

and Emily Boyle

University of Ulster

The 'Value Of Ma rketing ' and 'The

M arketing Of Va lue' in

Contemporary Times -A Literature

Review and Research Agenda

Over the last quarter of a century, it has becom e

increasingly apparent that the traditionally accepted

production based view ofthe value adding process is no

longer rea listic. Awareness of the value created

through the provision of services and the increasing

importance of services in the economic and business

environment suggests that value can also be created

through the consumption

process.

For marketers to use

the value adding potential of consumption to fulfil the

marketing concept, the nature of the process and the

value

created

by it need to be investigated.

This paper provides an overview of the changing

business environmen t and its implications for our

understanding ofthe concept of

value.

It examines the

increasing interest in the literature in the concept of

experiential value an d highlights the problems caused

by its very personal, idiosyncratic and situational

nature; and, suggests a conceptual model around

which research into the topic can be organised Finally,

it suggests a methodology for carrying out research

that would provide some insight into the factors that

cause consumers perceptions of experiential value to

vary so much.

Kej^words

experiential value, consumption, new marketing, new

economy, individualism

ntroduction

The marketing concept holds that achieving organizational goals depends

on determining the needs and wants of target markets and delivering the



344 Sharon Ponso nby an d Emily Boyle

desired satisfactions more effectively and efficiently than competitors d

(Kotler an d A rm strong 1997). To do this, an organ ization m ust offer t

customer better value than its rivals. Treacy and Wiersema (1994) defi

custom er value as the sum of the benefits min us the costs incu rred

acquiring the product or service . The means by which a company does th

is the subject m atter of the m arke ting discipline.

During the 1990s, there was much debate about the state of the disciplin

Some felt that its focus was too narrow and its assumptions unrealis

(Buttle 1994; Belk 1996; Brow n et al. 1996). Som e ar gu ed tha t m ark etin g in

existing form was dying (Brown et al. 1996). For example, by 1997, it w

argued that:

''the grea t com panies that... [hadj... once... [borne]... witness to the pow er oft

marketing concept...[hadJ... either closed or radically restructured th

marketing departments

(Brown

et

al 1997, p.63).

The discipline seemed to be in crisis (Holbrook 1995). There was a perceiv

nee d for som e form of ne w m arke ting ma nifesto (Grant 1999).

Simultaneously, a stream of literature identifying new approaches

marketing including po stm od em marketing and retro marketing (Brow

1995,

2001), relationship ma rke ting (Gronroos 1997; G um m esso n 199

one-to-on e m ark eting (Peppers an d Rogers 1995), lifestyle marketin

and experiential m ark eting (Schmitt 1999), an d tribal m ark etin g (Co

1997) began to appear. This raised a number of critical questions about t

relevance of the traditional marketing perspective in the present busine

environment. Marketers' dissatisfaction with the assumptions of t

traditional approach to marketing is clearly exemplified by the numero

refinements made to the traditional marketing mix framework over tim

(Brown 1995, 2001; C hristo phe r et al. 1991; Collier 1991; G um m es so n 19

1999;

Schm itt 1999).

A major weakness of traditional marketing was its limited appreciation

the nature of customer/consumer value and the sources of value creatio

Thus,

Pa rasu ram an (1997, p.l54) claimed that on e critical aspect of custom

value theory that is not yet fully developed concerns the sources from whi

consu m ers may deriv e value ; an d. Woodruff (1997) called for a rich

customer value theory . Similarly, The Marketing Science Institute (199

2000,

p.5) emp hasised the need to explore value from a c usto m er/c on sum

persp ective . Fu rtherm ore, Ho lbrook (1999, pp.xiii, 3) po inted o



The 'Value of M arke ting' and the 'M arke ting of Va lue' 345

investigate the nature and types of consumer value with anything like the

degree of com^prehensiveness and systemisation needed to make telling

concep tual inro ads into the issues of concern . Am ong these issues of

concern are the factors that can impact upon the type and level of value that

consumers gain from the consumption experience. This is the issue with

which this paper is concerned.

The paper presents a literature review explaining the weaknesses of the

traditional marketers' view of value and the reasons why they are no longer

adequate. This is followed by a discussion of how and why new insights into

the nature of consumption and the value that can be derived from it have

developed. New definitions of consumer value are provided and the

significant features of it are analysed. Of particular relevance is its

experiential nature; and, the value creating potential of consumers' intrinsic

emotional responses to the experience, rather than value derived from

extrinsic product attributes. Intrinsic value has been found to be personal,

idiosyncratic a nd situational (Zeithaml 1988), ma king it not only variable, bu t

also difficult for marketing managers to use in any coherent and systematic

way. This paper therefore proposes a conceptual model on which further

research in this area could be based and provides an outline of the factors

perceived to be relevant to the issue and some methods that could be used to

carry it out. Hopefully the research will enhance the level of understanding

of the nature of the experiential value of consumption and give greater

coherence to the body of kno w ledg e relating to it.

Traditional V iew f Va lue

The roots of marketing lie in classical economic theory that was developed

during the nineteenth century at a time when industrialisation was reaching

its pea k. Therefore trad ition al m ark etin g suffers from tw o major

weaknesses. Firstly, it views consumers as passive instruments soaking up

marketing communications and responding to them in an economically

rational way (Buttle 1994; Firat and Venkatesh 1993, 1996; Holbrook 1996;

M cDonagh an d Proth ero 1996; Woodruffe 1997). Secondly, its interpretation

of value and value creation is limited. Value is typically perceived in terms of

costs and benefits and the ratio of outputs to inputs or O/I (Holbrook 1999;

Gale 1994; Monroe 1990; Zeithaml 1988). Because of this its focus has

typically been on the production process as the dominant source of value

creation. Consumption is viewed as a post purchase process which has no

bearing on the value of the product and is therefore of little relevance to



346 Sharon Ponsonby and Emily Boyle

value creation as a function of demand and supply conditions. On th

demand side, value was created through scarcity of a product; and, on th

supply side, it was derived through the use of capital and the investment o

labour time and effort in the produc tion process (Holbrook 1995). Value w

added at each stage of the supply chain. This economically determine

explanation of the source of value has resu lted in attention being focussed o

the utility of a product, its physical attributes and the trade offs th

customers are prepared to make between quality and price (Band 1991; Ga

1994; Monroe 1990; Zeithaml 1988). Implicit in this instrumental view o

value is the perception that consumers make purchases on the basis o

rational choice decisions and preference judgements (Holbrook an

Hirschman 1982; Schmitt 1999). Monroe (1990, p.46) defined customer valu

as perceived quality which is adjusted for the relative price of th

pro ducts . This view of value suggests that the consum ption of an offering

devoid of any value creating potential (Firat and Venkatesh 1996; Firat an

Dholakial998).

These weaknesses of the traditional instrum ental view of value have led

Piercy's

(1991,

p.l5) contention that the traditional marketing conce

assum es and relies on the existence of a w orld which is alien an

unrecognisable to many of the executives who have to manage marketing fo

real ; and , to Schmitt's (1999) argu ment that traditional marketer

conceptualisations of consumers, products and competition are based o

largely untested assum ptions. It therefore fails to provide a useful startin

poin t for the developm ent of a general theory in any way and is little mo

than pu re rhetoric (Robson and Rowe 1997).

Firat and Dholakia (1998) believe that the traditional tendency to negle

the value adding potential of consumption is a consequence of th

industrialisation process in which produ ction m oved from the home into th

factory and thus became separated from the other aspects of people's live

From the days of simple barter through to industrialisation production an

consumption had been viewed as a single operation. Because of this, wo

was not separated from play, nor creation from recreation, nor function fro

ritual. In fact, pu re consum ption or recreational activity had a social, ritu

or functional purp ose (Firat and D holakia 1998, p . 7). For exam ple, harve

festivals and prayers for rain were rituals, but they also fulfilled ve

important social and economic functions. Production and consumption we

all part of the same process. This view can be com pared to the differen

between Westem and Eastem philosophies. Westem philosophers argue th

mind and body are two separate entities rather than being part of an overa



The 'Value of M arke ting' an d the 'M arke ting of Value ' 347

be Western in character, whilst the Easterners considered both mind and

body to be one and the same . It is only with the coming of the post-

indu strial age in the W est, that the em pha sis on objectivity is begin ning to be

questioned.

The Impact Of The N ew conomy

Over the last quarter of a century. Western society has moved out of the

industrial era into a new economic era in which rising income levels offer

consumers the opportunity to purchase what they want rather than what

they need (Pine and Gilmore 1999). This has resulted in consumers being

bombarded with a widening range of goods and services to choose from. It is

thus becoming increasingly difficult for consumers to differentiate between

offerings, rendering marketing on the basis of the traditional instrumental

view of valu e, increasing ly ineffective (Pine an d Gilm ore 1999).

The marketing dilemma is further compounded by another feature of the

new economy - the fact that consumer expenditure on services is much

higher than previously (Wolf 1999). As a consequence, the provision of

services has overtaken manufacturing as the dominant mode of wealth

creation in Westem society. This development has led a number of marketing

specialists to no te that con sum ers' eva luation of services hav e been generally

ignored in the past (for example, Caruna

et al

2000; Ravald and Gronroos

1996).

Services differ from products in four distinct ways. They are intangible,

variab le, per isha ble an d in sepa rable (Kotler and A rm stro ng 1997, p . 265). Of

these, inseparability has probably had the greatest impact on thinking about

value creation because the value of a service can only be created during

consumption. The inseparability of production and consumption in services

has led marketers to actively reassess the potential of consumption as a

mearungful an d valua ble experience and has caused a blur ring of the

subject-object d istinctio n (Firat an d Venk atesh 1996, p.255) be twe en

offerings and their consumption. In consuming a service, the consumer must

be involved in some way in value creation. If consumption creates value in

the provision of services, so too can it provide it for all offerings for as

Holbroo k (1999, p . 9) explains all pro du cts pro vid e services in their capacity

to create need-or-want satisfying experiences .

Acceptance of the view that value can be created as a result of

consumption as well as production implies that the role of marketers should

extend beyond transaction and product purchase or acquisition to usage and

disposa l (H irschm an an d Ho lbrook 1982; Ho lbrook a nd H irschm an 1982). To



348 Sharo n Ponson by an d Em ily Boyle

The Nature Of onsum ption

Consumption, by its very nature, is the central theme of consumer research

To provide greater insight into it, consumer researchers are concerned with

elucidating the role of symbolism, imagery and metaphor, the meaning o

rituals, ceremonies and traditions, and the impact of emotions and feeling

includ ing nostalgia on the process (Firat an d V enkatesh 1996; H irsc hm an and

Holbrook 1982; Holbrook 1994, 1999; Pine and Gilmore 1999; Schmitt 1999

Wolf 1999). However, few have tried to analyse its very essence

concentrating instead on such topics as the retail shopping experience, gif

giving, reasoned action and consumer (mis)behaviour, consumer aesthetics

and aggregate spending. A key reason for this is that analysing th

consumption process is particularly problematic for a number of reasons

Firstly, consumption is typically a personal experience carried ou

individually and often, in private by the consumer. Secondly, consumer

may find it difficult to describe or explain the aspects of the process; and

thirdly as Ho lt (1997) po ints out, the act of con sum ing is a varied and

effortful accomplishment underdetermined by the characteristics of th

object. A given consumption object ... is typically consum.ed in a variety o

ways by different groups of consumers .

Holt (1997) is one researcher who has analysed the consumption proces

and suggests that a typology of the variations in consumption can b

developed on the basis of two dimensions - the structure of the consumption

action and the purpose of consumption. The first dimension ranges from

personally engaging directly with the consumption object to consumption

that involves interaction with other people. The second dimension range

from being an end in itself (autotelic action) to being a means to some othe

outcome (instrumental action). From these, four generic types o

consumption have been identified. These are: consumption as experience

consumption as integration, consumption as classification and consumptio

as play. Co nsum ing as experience focuses on the subjective em otiona

reactions to consumption objects . In this sort of consumption, the process i

seen as a psychological phenomenon that evokes various types of persona

feelings (Holt 1997, p. 2). Consuming as integration occurs when consumer

w an t to feel that the object they are con sum ing is a constitutive e lem ent o

their ide ntity (Holt 1997, p . 6). They w an t to inte gra te self an d objec

thereby allowing the m selves access to the object's sym bolic p rop ertie s

Co nsum ption as classification occurs w he n consum ers perceive con sum ptio

objects as vessels of cultural and personal m ean ings thro ug h w hich the



The 'Value of M arketin g' and the 'M arke ting of Va lue' 349

Although value may be created during each of these types of consumption,

marketers have focused on consuming-as-experience, largely as a result of

the impact of Holbrook and Hirschman's work on ' the three Fs of hedonic

consumption' (1982) on the discipline. The three Fs referred to are fantasy,

feelings and fun. Initially, the significance of this w ork wa s con sidered to be

in the way it allowed for differentiation between two extreme types of

purchasing behaviour - a rational decision making approach on the one

hand, and a hedonic emotionally charged pleasure-seeking one on the other

hand. In the former case, little attention is paid to the potential to add to the

value of the purchase once the transaction has been carried out, whereas in

the latter case, consumers are seen to make purchases on the basis of the

anticipated pleasure their consuniption will provide for them. The sense of

pleasure is the result of fantasizing about the purchase's potential to arouse

positive feelings on consumption. This in turn allows consumers to have fun

and to enjoy the consumption process. In this way the consumption process

becomes a valuable experience in its own right. A typical example of this is

the decision by consumers to buy and eat food that they believe may not be

beneficial to their health but tastes delicious to them.

xperience and xperiential V alue

This example of hedonic consumption shows clearly that often, it is only

through the consumption of the product that the true value of its purchase

can be realised. In particular, it is the pleasing experience of consumption

that is significant. An experience has been defined as an event or occurrence

wh ich leaves an impressio n on som eone (Pearsall 1998). For an event to

have this impact, it must be of sigriificance to the individual concemed. This

significance results from the event affecting the person's emotions. These

emotions are not the outcome of rational thought, rather, they are affected

when one or more of the person's five senses are stimulated. The reason for

the stimulation is often subconscious, arising from the person's social and

cultural background. Thus, in trying to make sense of the emotions, people

imbue them with symbolic meaning. It is this symbolic meaning related to

the consumers' experiences that makes them valuable. The objects consumed

act as vessels of the m ean ing taken from a symbolic perspec tive (Holt

1997, p .1). T hu s, as Solom on (1999, p. 15) noted : peo ple often bu y p rod uct s

no t for w ha t they do , bu t for w ha t they m ean ; and. Sherry (1998)

com me nted that me anings are: continually emplaced in consum ers '




perceived preference for and evaluation of those product attributes, attribute

performances, and consequences arising from use that facilitate (or block

achieving the customer's goals and purposes in use situations . This view

reinforced by Holbrook (1994, p. 27; 1999, p. 5), contends that consume

value is an: interactive, relativistic, preference experience . It is interactive

because the consum er interacts with the offering in its consumption (subject

object interaction). It is preferential because it embodies a preference

judgement. It is relativistic because it requires comparison between thi

experience and some other one; and, it is experiential because the value can

only be derived from experiencing the situation from which the value is

derived. The increasing awareness of the value creating potential of the

consumption experience has led Schmitt (1999) to argue that the primary

objective of marke ters today should be to create a valuable custome

experience .

Thus, marketers are increasingly focusing on the provision of positively

memorable everyday consumptions experiences and have examined the

driving experience , the cooking experience , the shop ping experience

the cleaning experience , the clothes-wearing experience , the dining

experience , the on-line experience as poten tial sources of value (Pine and

Gilmore 1999; Schmitt 1999). Advertisers, for example, are now less likely to

focus on the attributes of a product that make it worthy of purchase by the

customer and are more likely to portray the product as part of a holistic

experience. As a consequence, products such as toothpaste and shampoo

which were formerly promoted on the basis of their product attributes and

benefits, are now likely to be promoted as pa rt of a grooming in the

bathroom experience (Schmitt 1999).

The success of any experience in providing consumers with added valu

can be gauged from their willingness to repeat it. they have a strong desir

to repeat it, then significant value has been created. This means ttiat the

experience has aroused strong, positive, symbolically meaningful feeling

and emotions in the consumer. Wolf (1999) suggested that there has been

cultural shift away from buying real goo ds to buying feel goods

Typically the positive value added through feel goods can range from

delight, desire, aspiration, nostalgia, sensuality and entertainment as well a

many others. The symbolic meanings that consumers often derive from thes

feelings can cause them to form emotional bonds with items they purchas

and to view them as evidence of their self identity or as reflections of thei

deeply held values (Brown 2001; Cova 1997; Gobe 2001; Pine and Gilmor



The 'Value of M arketin g' and the 'M arke ting of Va lue' 351

Furthermore they can also serve as a social link among people (Cova 1997,

2003),

as in the case of the admiration of cult objects by sub-cultural

groupings who use them to form social bonds or attain linking value.

The positive emotional consequences of a consumer's experience have

been referred to as em otional payoff and have been identified as abstract,

mu ltidime nsiona l, difficult-to-measure attribu tes (Zeithaml 1988). Zeitham l

(1988) considers that these have a higher-level impact than monetary or

cognitively based value factors (that is, value based on rational decision

making). Through an exploratory study, she found that consumers '

perceptions of the value of a food product changed as they moved from

purchasing it, to preparing it for consumption, and finally to consuming it.

She found that higher-level value factors are more common during the actual

consum ption process than d urin g earlier evaluation stages.

These higher-level factors m ay be eq uated w ith the concept of the intrinsic

aspects of cons um er va lue identified by Ho lbroo k (1994). These contrast w ith

the extrinsic aspects of value that relate essentially the product's attributes

and are the cornerstone of traditional views of value. Holbrook (1994)

developed a Ty pology of Co nsum er Value on the basis not only of its

extrinsic/ intrinsic dim ens ion bu t also its ac tive / reactive an d

self-

oriented/other-oriented dimensions. Active value can only be derived from

manipulating the product whereas reactive value can be gained through

mere observation. For example, the value of food might come from eating it,

but the value of a well-made suit of clothing is observable from the quality of

fabric, sewing and style. Self-oriented value refers to personal feelings of

satisfaction derived from consumption for the benefit of oneself, whereas

other-oriented value is concemed with the positive emotional response felt

from giving someone else satisfaction or from conspicuously partaking

socially in a consumption activity (Cova 1997, 2003; Muniz and O'Guinn

2001).

Thus, for example, Zeithaml (1988, p.l4) cited the case of mothers'

increased perceptions of the value of consuming fruit juice when their

children m entio ned them .. .or evide nced th an ks ; and , Cova (1997, 2003)

and Muniz and O'Guinn (2001) have noted that consumers derive value from

interacting with each o ther an d h avin g a shared interest in the object w hich is

often the cause of them being together in various contexts (e.g. sub-cultural

groupin gs' ritual gatherings).

Using these three dimensions, Holbrook identified eight types of

consumer value - four of which are extrinsic and analogous with traditional

views of value. The other four, in which intrinsic factors are significant, are



352 Sharon Ponso nby an d Emily Boyle

the aestheticisation of everyday life referred to by Cova 1997) - for examp

the value derived from listening to a certain piece of music or appreciati

an oil painting. The value of ethics derives from actively providing add

satisfaction for others, as in the fruit juice example above; and, that

spirituality from the ecstasy derived during certain experiences. Holbro

(1994, p . 55) cites Perry w ho in 1954 desc ribed a class of states vagu

described as 'exaltation' and 'rapture' accompanied by a 'sense of union

For those concerned this is sup rem e valu e . . .good .. .abov e all other goods

Desp ite the deve lopm ent of this typolog y of intrinsic value, question s s

rem ain a bou t how ma rketers can use it to fulfil the ma rke ting co ncept. This

because not only are customers' perceptions of a valuable experience high

pe rson al (even if, o n occasions sh ared w ith o the rs (Cova 1997, 2003

individualistic and idiosyncratic, they are also conditional on the situation

which the experience occurs (Zeithaml 1988; Holbrook 1994). An experien

that is considered valuable by one consumer (or group of consumers) in o

situation may be conside red as a major cost in ano ther. The consu me

mood state, purpose in seeking the experience, other emotional factors a

even the environm ent in which the experience occurs can all imp act up on

value creating capacity (Bitner 1992). Again, aspects of an experience valu

by one consumer may seem extremely costly for another or be de-valued.

Baker et al. (2002) argue that just as the factors adding to the perceiv

va lue of an experience can rang e from lower level to higher level, so too c

perceive d cost factors. Costs ran ge from m on etary to cognitive to psychic a

even to physiological. Cognitive cost factors are those that the consumer

rationally and consciously aware of and are similar to the concept

opportunity costs in economic theory. The time spent doing one thi

instead of another is an example of this. Psychic cost factors refer to t

nega tive emo tional consequen ces of an experience, the best exam ple of whi

is probably the stress caused by it. This type of cost is intrinsic and is t

opp osite of intrinsic value . Physiological costs refer to the d etrim enta l impa

that an experience might have on a consumer's physical well being (Baker

al. 2002).

The impact of background music playing during customers ' shoppi

experiences provides a typical example of a factor that can create eith

psychic value or psychic costs. Evidence from Aylott and Mitchell (1999) a

others suggests that it typically lowers consumers' psychic costs and m

even add to their experience value. However, Brown and Reid (1997) fou

that it had the opposite effect among some members of their sample



The 'Va lue of M arketin g' and the 'M arketin g of Va lue' 353

and, even possibly physiological factors for customers; or, it can be costly

only in monetary terms but valuable in terms of the intrinsic value adding

benefits of the experience. This is because there are at least two types of

sho ppin g - task oriented and recreational (Eroglu an d H arell 1986). For task

oriented shoppers, shopping is an essential activity that they have to do

which gives them little pleasure. The costs are monetary, cognitive in terms

of time spent on the task and, possibly, psychic in terms of stress suffered.

Typical shopping stressors include perceived crowding, long queuing and

waiting times, poorly laid out stores, the unanticipated location of items and

badly beh av ed child ren (Aylott and Mitchell 1999).

In contrast to task oriented shoppers, recreational shoppers gain various

types of value from the experience because for them, shopping is

pleasura ble in a nd of

itself .

They have little interest in making an

immediate purchase. For them, time is not a cognitive cost and perceived

crow ding n eed not be stressful (Eroglu an d H arell 1986). They are ha pp y

browsing, actively seeking information about offerings and comparing the

characteristics of similar items in different shops. These shoppers often make

impulse purchases. When they do, they often feel a real sense of euphoria,

perhaps akin to Holbrook's ecstasy, which adds significantly to the psychic

value of the experience (Brown and Reid 1997).

ummary

n

sum ma ry, then, this pap er has show n that because of the recent

development of the economic and business environment from an industrial

to a post-industrial state, the classical views of value p reviou sly accep ted by

marketers which focused solely on value created through the production

process is no longer tenable by marketers wanting to fulfil the marketing

concept adequately. Recent research has indicated that consumers can gain

significant value from the purchasing and consumption experience and that

this value derives largely from their positive symbolically meaningful

emotional response to the experience. This type of value is sometimes

referred to as intrinsic or psychic value.

From the traditional economic viewpoint, value is what is left after the

costs of the experience have been deducted. Sometimes when a customer has

a bad experience, the costs (for example, monetary, cognitive, psychic and

physiological) can be greater than any value gained from it. Furthermore the

literature suggests that the nature of consumers' intrinsic, psychic value and

costs are situational, personal (or personally shared) and idiosyncratic (Cova



354 Sharo n Ponsonb y an d Emily Boyle

understandable and thus usable. As the Marketing Science Institute (199

2000, p .5) has note d, that un de rsta nd ing the custom er expe rience is one

two key issues that dese rve intensive research attention at the pre sen t tim

Research Imp lications and genda

In light of the foregoing discussion, it is clear that a key research questio

that needs to be answered concerns the factors that cause individualistic (o

personally shared), situational perceptions of intrinsic experiential value. T

answer this question, as the Marketing Science Institute (1998-2000, p. 5

notes multidisciplinary perspectives need to be used. Con sume r researc

has led the way in this by accepting creative, philosophical, humanistic, an

artistic concepts and methods as well as those from other social science

including semiology, anthro polo gy, psycholog y and psych oanalysis (Pin

and Gilmore 1999; Holbrook 1995; Schmitt 1999; Gobe 2001; Brown 2001

Furthermore, consumer research is becoming increasingly integrated int

marketing research and its methodologies are increasingly being applied

ma rketin g man age m ent issues (see Zajonc and Marcu s 1982; Hirs chm an an

Holbrook 1982, Brown and Reid 1997; Patterson et al. 1998; Carson et a

2001).

In particular, despite criticism from some researchers (Campbell 199

Uu sitalo 1996) the subjective, person al introspection m eth od strongl

advocated by Holbrook (1995) has now gained favour with a number o

marketing researchers including Brown and Reid (1997) and Patterson et a

(1998) and has been effectively used by them. This research method ha

proved particularly useful for gaining information about a consumer

individual perceptions of events and experiences. It is thus anticipated th

by combining evidence gleaned from using this research method to asse

the experiential value that the researcher him/herseK and consumers gai

from an event, with evidence derived from more traditional social scienc

techniques and instruments for analysing the factors affecting the consumer

responses to the event, progress can be made in answering the researc

question posited above .

Using Holbrook's (1994) basic view that experiential value results fro

consumers' interaction with the object (an product, service, event) it

surmised that consumers ' experiential value/cost perceptions result fro

three sets of factors. Therefore, it is important to consider the nature and sta

of the consumer at the time of the event, the characteristics of the event, an

the impact of contextual factors, particularly the socio-cultural factors. Usin




affecting the consumers (Hoyer and Maclnnis 2001). Finally, the impact o

the environment and ambience in which the event/group situation too

place could be ascertained through follow-up interviews (Bitner 1992; Bake

et al. 2002). Where appropriate, statistical techniques may be used to ensur

the validity and reliability of the findings.

It is only through research of this type that some kind of codifie

generalisable knowledge set relating to the factors affecting consumers

perceptions of experiential value/costs will emerge. However, given th

claims tha t research of this natu re would be a monumental task by those wh

have attempted to ascertain the nature and types of consumer value whic

exist (Holbrook 1999), and the emerging insights into the limitations o

exploring use value in the context of mere subject-object interaction (Cov

1997, 2003), one might ask whether this is a feasible exercise. Furthermor

one would need to consider that those marketers with post-modem

ideologies and an incredulity towards meta-narratives have suggested tha

research which aims to gain a holistic understanding of any phenomenon is

pointless exercise, is modern ist in tenor, and thu s not suitable or appropriat

for contemporary times. This includes Holbrook's widely accepted

Typology of Consumer Value .

on lusion

Marketers' neglect of the value adding potential of the consumption

experience in the past was a consequence of the separation of production and

consumption du ring industrialisation, often equ ated w ith the mo dem era b

prop onents of post-modern marketing (Firat and Venkatesh 1993, 1996

However, in this post-industrial, information or sign economy (Baudrillard

1981), marketers are becoming increasingly aware that they are both part o

the overall value adding process in the same way that the body and mind ar

part of a single entity. But just as the body and mind function in differen

ways within this entity, so too do the value adding aspects of production an

consumption. The value adding potential of consumption is typicall

intrinsic, psychic, personal (or personally shared) and situational. Thi

contrasts with the extrinsic value added through the production process

which is cognitive and instrumental.

Despite the existing lack of coherence of information relating to th

manifestation of intrinsic value, there is evidence that som e firms' customer

experience it. Successful firms/brands such as Nike, Apple Macintosh, Har

Rock Cafe, Starbucks, Virgin and Singapore Airlines often have loyal cu



The 'Value of M arke ting' and the 'Ma rketing of Va lue' 357

experiential value to work from, particularly that which shifts beyond

subject-object interaction to the consumer-consumer interaction which

involves the consumption of their product. If firms wish to move beyond

building cognitive types of customer loyalty (for example, loyalty

programmes), they must understand the micro and the broader macro

context of consumption and its value in contributing to well being. They

must also understand as well as individual-level consumption, the micro-

social level of consumption to which sub-cultural groupings belong because

consumers may conduct repeat purchases as a consequence of their loyalty to

the social group, not necessarily the brand. The research outlined above

could pr ov ide th e first step in this.

References

Aylott, Russell an d Mitchell, Vincent-W ayne (1999), A n Exp loratory Stud y

of Grocery Shopping Stressors , British Food Journal September 1999 No.

9, pp.683-700

Band, William, A. (1991), reating

Value for Customers

N ew York, John W iley

and Sons

Baker, Julie (1998), Ex am ining th e Informational V alue , In: Servicescapes

The Concept of Place in Contemporary Markets (Ed.), Sherry, John, F.

Linco lnwo od, N TC B usiness Books, pp.55-80

Baker, Julie, Parasuraman, A., Grewal, Dhruv and Voss, Glenn, B. (2002),

The Influence of M ultiple Store Enviro nm ent Cues o n Perceived

Merchandise Value and Patronage Intentions , Journal

of M arketing

April,

No. 2, pp.120-140

Baudri l lard, Jean (1981), For a Critique of the Political Economy of the Sign St

Louis, Telos

Belk, Russell (1996), O n Aur a, Illusion, Escape, an d Ho pe in Apocalyptic

C o n su m p t i o n , I n :

Marketing A pocalypse Eschatology Escapology and the

Illusion of the End (Eds.), Brown, Stephen, Bell, Jim, and Carson, David

(London), Routled ge, pp.87-107

Bitner, M ary-Jo (1982), Servicescapes: The Impac t of Physical Su rrou nd ing s

on Customers and Employees ,

Journal

of Marketing Ap ril, No . 2, pp.57-71

Brown, Stephen (1995), Postmodern Marketing London, Routledge

Brown, Step hen , Bell, Jim an d Ca rson, D avid (1996), Apo caholics

A no ny m ou s. Looking Back on the End of Ma rketing , In: Marketing

Apoca lypse Eschatology Escapology and the Illusion ofthe End

(Eds.) , Brown,

Stephe n, Bell, Jim a nd Carson, D avid, Lon don, R outledge, pp.1-20



358 Sharon Ponso nby and Emily Boyle

Brown Stephe n an d Reid, R. (1997), Sh opp ers on the Verge of a N ervo u

Breakdown , In:

Consumer Research: Postcards from the Edge

(Eds.), Br

Steph en and Turiey, Da rach (Lon don), Rou tledge, pp.79-149

Brown, Stephen (2001), To rmen t Your Cu stom ers (They'll Love It) ,

Harv

usiness Review

October, N o, 9, pp.82-88

Buttle, Francis (1994), Editorial - a N ew P arad igm Research in M arketing

European Journal of Marketing

Au gust-Sep temb er, N os. 8/9, pp.8-11

Campbell, Anthony (1975),

The Mechanics of

Enlightenment

An Examinati

the Teaching ofthe Maharishi Mahesh Yogi

Lo ndo n, Victor Gollancz Ltd

Cam pbell, Colin (1996), Rom anticism, Co nsu m ptio n and Introspection , I

Consumption and Marketing: Macro Dimension (Eds.), Belk, Russel

Dholakia, Nikhilesh and Verikatesh, Alladi (Cincinnati, Ohio), Sout

western College Publications, pp.96-103

Carson, David, Gilmore, Audrey, Perry, Chad and Gronhaug, Kjell (2001

Qualitative M arketing Research

Londo n, Sage

Ca runa, A lbert, M oney, Arth ur, H. an d B erthon, Pierre, R. (2000), Servi

Quality and Satisfaction - the Moderating Role of Value , European Jou

of M arketing No vem ber-Dec em ber, Nos.11/12, pp.1338-1352

Christopher, Martin, Payne, Adrian and Ballantyne, David (1991

Relationship

Marketing Oxford, Heinemann

Collier, Da vid, A. (1991), N ew M ark etin g Mix Stresses Service ,

Journa

usiness Strategy

1991,

N o. 2, pp.42-45

Cova, Bernard (1997), Co m m un ity and Con sum ptio n - To w ard s a Definitio

of the Link ing Va lue of Pro du ct or Services , European Journal

Marketing A pril, N os. 3/4, pp.297-316

Cova, Bernard (2003), An alyzin g and Playing w ith Tribes W hich Co nsum e

Ma rketing Ed

E-Comm erce

pp.66-89

Eroglu, Sevgin and H arre ll, Gilbert, D. (1986), Retail cro w din g: theoretic

and strategic implications .

Journal

of Retailing Winter, No. 4, pp.346-36

Firat, A. Fuat an d Venk atesh, Alladi (1993), Po stm od em ity: the Age

Marketing ,

Intemational Journal of Research in Marketing

August, No

pp.227-49

Firat, A. Fua t and Ven katesh, Alladi (1996), Postmode m Perspe ctives o

Consumption , In: Consumption and Marketing: Macro Dimension (Eds

Belk, Russell, Dholakia, Nikhilesh and Venkatesh, Alladi, Cincinna

South-Western College Publications, pp.234-265

Firat, A. Fuat and Dholakia, Nikhilesh, (1998), Consuming People: Fr

Political Economy to Theatres of Consumption

London, Routledge

Foxall, Gordon and Goldsmith, Robert. E. (1994), Consumer Psychology f



360 Sharon Ponson by and Emily Boyle

McGraw-Hill

M uniz, Albert M. Jr. and O 'Guin n, Thom as, C. (2001), Brand C om m un ity

Journal

of

Consumer

Research,

M arch, N o. 4, pp.412-432

Naumann, Earl (1995),

Creating Customer Value. The Pa th to Sustainab

Competitive

Advantage,

Cincinnati, OH, Thomson Executive Press

Par asu ram an, A. (1997), Reflectioris on Ch ang ing Com petitive A dva ntag

Through Customer Value , Journal of the Academy of Marketing Scienc

Sprin g, N o. 2, pp.154-161

Patterson, Anthony, Brown, Stephen, Stevens, Lorna and MacLaran, Paulin

(1998),

Ca sting a Critical T Ov er Caffrey's Irish Ale: Soft Wo rds , Strongl

Spoken , Journal

of Marketing

Management Octob er, N o. 7, pp.733-748

Pay ne, A drian a nd Holt, Sue (1999), A Review of the Value Literature an

Implications for Relationship Marketing,

Australasian Marketing Jouma

Janu ary, N o. 1, pp.41-51

Pearsall, John (1998), New Oxford Dictionary of English, Oxford, Clarendo

Press

Pep pers, Don and Rodgers, M artha (1995), A New M arketing Paradigm

Share of Customer Not Market Share ,

P lanning Review,

March/Apr i l , N

2,

pp.14

Piercy, N ige l, F. (1991), Market led Strategic Change, London, Thorsons

Pine, B. Joseph an d G ilmo re, Jam es, H . (1999), The Experience E conomy: Wo

Theatre

Every

Business

a Stage,

Boston, H arv ard Business School Press

Rava ld, A. an d Gron roos, Ch ristian (1996), The Value Concep t an

Relationship M arketing, European Joumal of Marketing, April, No . 2, pp .l

30

Robson, Ian an d R owe, Jim (1997), M arketin g - The W hore of Babylon?

European

Joumal of M arketing,

October, Nos. 9/10 pp.654-666

Schmitt, Bernd, H. (1999),

Experiential Ma rketing: How to Get Customers

Sense, Feel Think, Act, and Relate to Your Com pany and Brands, N ew Yo

Free Press

Sherry, John F. (1998), The Soul of the Co m pan y Store: Nik e Tow n Chicag

and the Emplaced Brandscape , In: Servicescapes, The Concept of Place

Contemporary Markets, (Ed.), Sherry, John, F., Linco lnwo od, NT C Busine

Books, pp.109-146

Solomon, Michael (1999), Consumer Behaviour Buying, Having and Being, N

Jersey, Prentice Hall

Treacy, Michael and Wiersema, Fred (1994),

The Discipline of

Market

Lead

London, BCA

olfMichael (1999), W elcome to the Entertainment

Economy,

Penguin Boo



The 'Valu e of M arke ting' and the 'M arke ting of Va lue' 361

Spring, No. 2, pp.139-153

W oodruffe, H elen (1997), Eschatology, Prom ise, H ope : the Uto pian Vision

of Consumer Research , European

Joumal of Marketing

October, Nos. 9/10

pp.667-676

Zajonc, Ro bert and M arcu s, H . (1982), Affective an d Co gnitive Factors in

Preferences ,

Joumal of

onsumer

Research

N o. 9, pp.123-131

Ze itham l, Valerie A. (1988), C on sum er Perception s of Price, Qu ality, and

Value: A Me ans-end M odel of Synthesis of Evide nce , Journal

of Marketing

July, N o. 3, pp.2-22

Uusitalo, Liisa (1996), H ow to Study Im aginary Aspects of C onsu m ption ,

In : Consumption and Marketing: Macro Dimension (Eds.), Belk, Russell,

Dholakia, Nikilesh and Venkatesh, Alladi, Ohio, South-Western College

Publications, pp.87-95

About the Authors

Sharon Ponsonby works in the Faculty of Arts at the University of Ulster.

Her main research interests are in the ethno-sociological aspects of the value

of consum ption.

Emily Boyle

is Head of the Research Graduate School of the Faculty of

Business an d M ana gem ent at the University of Ulster.

the 'value of marketing' and 'the marketing of value' in contemporary times --a...

Documents